2018 Senior Housing Outlook Report - PHONE: 312-268-2420 EMAIL: HubSpot
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2018 Senior Housing
Outlook Report
E MAI L : info@seniorhousingnews.com
PHO N E : 312-268-2420
PAGE NO.
1
Executive Summary
The 2018 Senior Housing News Outlook Survey and Report
results the views of 634 individuals polled about their
thoughts about the senior living industry for 2018. The
survey, conducted in December 2017, asked about how
companies are:
• Planning to invest this year
• Identifying the most attractive senior housing property
types for investment purposes
• Looking at how budgets may shift
• Looking at the most attractive opportunities and
challenges they see for the year ahead
The results show senior housing owners and operators are
more optimistic about their approach to the market versus
last year, but some sentiments are shifting on some topics
from prior quarters in 2017.
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2Key Takeaways
$
Independent living, Staff retention The shift to a
memory care remain a top priority seller’s market
attractive
It’s not surprising that staffing During Q2 2017, 10% of
Memory care is the second-most
concerns are the top worry for respondents planned to sell
attractive category of senior living
2018. Interestingly, it seems more senior housing assets. This year,
to invest in, behind independent
money will flow toward retention 37% plan to do so. And it appears
living, continuing optimism from
than recruitment. the biggest buyers in 2018 will be
2017.
private equity and private REITs.
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3Which of the following is the
In 2018, my company plans to
greatest challenge to senior
_________ senior housing assets.
living in 2018?
Occupancy Challenges 25%
53% Buy Staffing Challenges 45%
9% Hold Rising Interest Rates 4%
37% Sell New Competing Properties 17%
Political Environment 10%
RESPONDENTS P L AN TO B UY
In 2018, respondents are clear about their intentions to buy 0 20% 40% 60%
or sell: They plan to buy. About 53% said they will buy senior
housing assets, with 37% indicating they’re looking to sell.
4 5 % A N T I CI P AT E S TA F F I N G CH A L L E N G ES
During Q2 2017, 10% of respondents planned to sell senior Even with new recruiting initiatives, survey participants
housing assets. anticipate staffing to be the greatest challenge the industry
will face this year. A quarter of respondents believe
occupancy will be 2018’s biggest challenge.
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4What will be the most attractive category of senior housing in
which to invest in 2018?
Independent Living 33%
Assisted Living 21%
I N D E P E N D E N T L I V I N G R E M A INS
AT T R A CT I V E
Memory Care 24%
Independent living will remain the most
attractive senior housing category, just as it
Skilled Nursing 2% was in 2017.
Post Acute-Rehab 3%
Active Adult 17%
0 20% 40% 60%
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5What is your outlook for new Who will be the biggest buyer
senior housing construction of senior housing assets in
starts in 2018? 2018?
Private Equity 37%
2% Decrease Significantly
Public REITS 18%
18% Decrease Somewhat
Private REITS 28%
23% Remain the Same
Institutional 9%
44% Increase Somewhat
Other 8%
12% Increase Significantly
0 20% 40% 60%
DIV IDED ON NEW D EV EL O P M EN T
The industry was divided on new development in 2017. But P R I VAT E E QU I T Y T O R E M A I N N O. 1
this year, a majority of respondents expect senior housing
construction starts to increase, either somewhat (44%) or Expect private equity to remain the No. 1 buyer of senior
significantly (12%). housing assets in 2018, as 37% of respondents believe.
But don’t count out private REITS. 28% of participants
expect private REITS to remain active buyers.
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6What is your outlook over the next 12 months for national occupancy
rates for the following?
IN D E PE N D E NT LIVING ASSIST ED L I VI NG ME MORY CARE
13% 16% 12%
Decrease
51% 52% 67% 22% No Change
36% 33%
Increase
S K ILLE D N U RSIN G POST AC UTE/RE HAB
M E M OR Y CA R E W I L L R E M A I N A H OT M A R K ET
15% More than 65% of survey respondents believe memory care
occupancy rates will increase over the next 12 months.
28% 34%
41% Respondents also anticipate assisted living and independent
living occupancy rates to increase.
45%
39% However, 34% of respondents expect skilled nursing
occupancy rates to decrease.
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7In 2018, how is your company In 2018, how is your company
budget going to change for budget going to change for
digital marketing? recruiting and training?
REC RUI TI N G
D I GI TAL To help combat staffing
M ARKE T I N G 35% Increase
challenges, companies will
58% Increase 3% Decrease maintain their recruiting
budgets to fill key positions.
2% Decrease 36% Stay the Same
35% of respondents even
26% Don’t Know expect an increase in
27% Stay the Same
recruiting budgets.
13% Don’t Know
TRAI N I N G &
C ON TI N UI N G EDUC ATI ON
IN 2018 , IT’S AL L AB O UT D IGITAL . 51% Increase
Survey findings indicate
over 50% of companies
58% of participants expect their digital marketing budgets
2% Decrease will increase training and
to increase this year. A greater digital presence will help
continuing education
senior living companies reach tech savvy seniors and their 33% Stay the Same
budgets, demonstrating
adult children.
14% Don’t Know long-term commitments to
employees.
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8In 2018, how is your company
In 2018, how is your company
budget going to change for
budget going to change for
renovation and refurbishment?
technology?
TECHNOLOGY SPENDING
REN OVAT I ON / R EFUR B IS HME NT OF (For WiFi, Electronic Health Records, IT
EXI STING C OMMUNITIES Infrastructure)
42% Increase 57% Increase
2% Decrease 2% Decrease
26% Stay the Same 23% Stay the Same
30% Don’t Know 18% Don’t Know
RENOVATION / REFURB IS HM EN T O N
S E N I OR L I V I N G COM M U N I T I E S A R E
THE RISE
BE COM I N G M OR E H I G H - T E CH
42% of respondents expect their budgets for
Our survey found 57% of respondents expect technology
community renovation or refurbishment to increase,
spending to increase so they can install WiFi, implement
indicating existing communities plan to strongly
EHR systems or enhance existing IT infrastructure.
compete with new developments.
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9Methodology
In December 2017, Senior Housing News The 2018 Outlook Report is compiled
surveyed its subscriber base via email to and produced by Senior Housing News.
gauge the industry’s pulse on important Readers are advised that Senior Housing
factors and issues senior housing will face News does not represent the data
in 2018 and had 634 respondents. contained herein to be definitive. The
contents of this publication should also
The majority of respondents (71%) not be construed as a recommendation of
identified themselves as high-level policies or actions.
executives in their companies, ranging
from senior level and C-level executives
to owners. Of these respondents, 36%
identified as Senior Vice President or
Vice President. 35% of participants
identified as an owner, executive or C-level
executive. 29% percent identified as Other.
Percentages within this report were
rounded to the nearest full percentage.
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10Contact Us
We’re happy to hear from readers with
questions, comments, concerns and story ideas.
EMA I L: info@seniorhousingnews.com
PHO N E : 312-268-2420
W E B SI TE : seniorhousingnews.com
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